Toronto’s main stock index shot higher in a broad-based rally on Thursday as a rise in oil and gold prices lit a fire under the resource-heavy index and lifted it higher for the week.
The energy sector rose 4 percent to lead the rise as oil prices moved sharply to above $70 a barrel, given rebel attacks against oil facilities in Nigeria and worries that a glitch at at a Texas refinery could dent U.S. gasoline stockpiles. [ID:nSP191786]
Shares of Canadian Natural Resources (CNQ.TO), the biggest driver behind the latest gain, ended up 5.9 percent at C$60.13, while Suncor Energy (SU.TO) rose 5.5 percent to C$35.17.
Barrick Gold Corp (ABX.TO) shares ended up 4.8 percent at C$40.60, helping steer the materials group to a gain of 3.61 percent as gold futures rose toward $940 an ounce.
The S&P/TSX composite index .GSPTSE rose 254.92 points, or 2.52 percent, to 10,355.85.
With the gain, the TSX reclaimed all the losses suffered early this week when the the World Bank said that prospects for the global economy remained “unusually uncertain”, knocking the TSX down more than 450 points. [ID:nSGP000012]
At one point the index was down as much as 5.4 percent on the week, but a pair of triple-digit rallies has it up 0.66 percent heading into Friday’s session.
“When the market gives back or corrects it seems to correct sharply and so people saw some opportunities there,” said Bruce Latimer, a trader at Dundee Securities.
“And there’s also maybe a little positioning going on before month-end with two holidays next week, so you might have guys trying to get things done.”
The TSX will be closed on Wednesday July 1 for Canada Day while U.S. markets will be closed on Friday July 3 for Saturday’s July 4 Independence Day.